Scientific Atlanta Purchases PVR License from Command Audio

By Mike Robuck

You don't see billionaire athletes signing mega deals for shoelace endorsements, but the lowly shoelace, or Velcro strap in some cases, is what keeps it all together.

Comparing Command Audio to a shoelace isn't exactly fair, but the company's patents work behind the scenes in a similar low-key manner. Scientific Atlanta signed a deal last week with Command Audio to purchase a license for its personal video recorder (PVR) technology.

Under terms of the agreement, Scientific Atlanta acquired a license to use Command Audio's patented technology in all of its PVR set-top box products. The worldwide agreement runs for the life of Command Audio's patents, and no financial terms were disclosed.

Command Audio, a privately held company that counts Motorola and Texas Instruments among its investors, has previously licensed its patents and technology to other companies in the consumer and automotive electronics fields, including Motorola, ReplayTV, Sony, XM Satellite Radio and iBiquity Digital's HD Radio. Command Audio CEO and co-founder Don Bogue said Motorola is using his company's technology for its automotive product iRadio, but not in set-top boxes.

"Our patents are critical to the time-shifting functionality and convenience that millions of TV viewers are demanding," said Bogue, in a prepared statement. "Our license agreement with Scientific Atlanta further reinforces the strength and value of our patents in the enormous and fast-growing market for products with PVR functionality. We expect continued success as we actively protect and license our intellectual property."

Why it's called Command Audio instead of Command Video

Command Audio holds more than 60 U.S. and foreign patents with applications that span the television, personal computer, digital radio, cell phone and game console industries. The Redwood Shores, CA-based company got its start in 1995 when it commercialized technology that let consumers load radio shows onto a device for listening at a later time, which Bogue refers to as "TiVo for radio."

Years later, it turns out that Command Audio's underlying intellectual property, or patent, is perfect for storing a broadcast signal in the memory of set-top box in a subscriber's home by using a software solution. Bogue said that while Scientific Atlanta has developed its own software and hardware to deliver PVR functionality, the underlying patent belongs to Command Audio.

Opportunities abound

Bogue said Command Audio is in discussions with other set-top box manufacturers, including those for IPTV. And the serendipitous opportunities also roam into the mobile space as well.

"We believe that TV is a great market for us, but where we started was more audio-centric," Bogue said. "The emerging markets are exciting for us. We started out with radio first, then home PVRs second, but what is really exciting is the market on the horizon for distribution of video to cell phones. We think that we'll be a very big player in that market."

So for Command Audio it doesn't matter if it's a shoelace technology because there are a lot of different shoes that need laces.

- Mike Robuck